Farming publications

Weekly Economic Commentary

Monday March 31, 2014

After a couple of quiet weeks the economic calendar ramps up once again this week with plenty of key data releases due out. We also have the monthly Reserve Bank of Australia Board meeting on Tuesday. The market expects the RBA to leave the official cash rate unchanged at 2.50% for the seventh consecutive time at this meeting. While their accompanying rate guidance is likely to remain neutral, the tone in any commentary may be slightly more positive following the recent comments by the RBA Governor last week.

Speaking in Hong Kong last week, RBA Governor Glenn Stevens was clear that he expects the economy to strengthen over the next year, but he had little to say on the Australian Dollar. With the Dollar now above 92 US cents there may be some extra commentary from the RBA on the currency this week, but the bottom line for the interest rate outlook will be the same as last month and consistent with their previous statement that “the most prudent course (for monetary policy) is likely to be a period of stability in interest rates”.

Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank – A Division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879